Yes. They did think about a new edition. They also created the OGL so that when they were not there, they could be assured that Dungeons and Dragons continued in a form they liked. They are also, today, funnily enough, the competition, so to speak. So for them it was a smart business decision.
I am not sure, but aren't you the one who said that WotC is "people" and the "people" have changed at WotC, so WotC is not an entity (or something like that, I might not remember correctly)?
Well, if you work for a company in a managing position, you have to act according to the needs and interests of that company. Duty is a big word here for me. We know that some managers do not do that, but I never would have guessed that you think the decision makers at WotC back then were these kind of "people". But wait, then again, for you it was a good decision, because you still play the game "they" like. But whether you like 3rd edition or not does not really matter here.
If they really thought that 3rd edition was the edition they liked and wanted this edition to stay around without the future "people" at WotC having any say in the matter, "they" accomplished their mission. But if you are right, but I am not sure you are, then they made the wrong decision about the best interest of the company that they worked for at the time, which was WotC.